by Calculated Risk on 5/28/2025 07:00:00 AM
From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey
Mortgage applications decreased 1.2 percent from one week
earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications
Survey for the week ending May 23, 2025.The Market Composite Index, a measure of mortgage loan application volume, decreased 1.2 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2
percent compared with the previous week. The Refinance Index decreased 7 percent from the previous
week and was 37 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index increased 3 percent from one week earlier. The unadjusted Purchase Index increased 2 percent
compared with the previous week and was 18 percent higher than the same week one year ago.“Mortgage rates reached its highest level since January, following higher Treasury yields. Additional
market volatility has added to the increase, keeping the mortgage-Treasury spread wider than it was
earlier this year. The 30-year fixed rate increased to 6.98 percent, its third consecutive weekly increase,”
said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “As a result of these higher rates,
applications activity decreased, driven by a 7 percent decline in refinance applications. Conventional
refinances were down 6 percent, and VA refinances dropped 16 percent. Purchase applications were up
over the week and continue to run ahead of last year’s pace as increased housing inventory in many
markets has been supporting some transaction volume, despite the economic uncertainty.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($806,500 or less) increased to 6.98 percent from 6.92 percent, with points decreasing to 0.67 from 0.69
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added
Click on graph for larger image.
The first graph shows the MBA mortgage purchase index.
According to the MBA, purchase activity is up 18% year-over-year unadjusted.
Red is a four-week average (blue is weekly).
The refinance index decreased and remained very low.
